Bank of China RMB Business Q&A

Personal Customers

1.RMB Deposit

(1)Is there a minimum balance requirement for setting up a RMB deposit account?

Yes. The minimum balance requirement for RMB accounts are the same as our regular USD accounts. The minimum balance for RMB Savings accounts is the RMB equivalent of USD500. The minimum balance of RMB time deposit accounts is the RMB equivalent of USD1,000. We offer RMB CDs in 6-month and 1-year terms.

(2)What are the required documents for account opening?

For customers who want to open a RMB deposit account with us, they need to complete the account application form, W-9 form, and the signature card. In addition, customers are required to provide their Social Security Numbers and two valid identification documents. At least one of the identification documents should be a government issued photo ID, e.g. Passport, Driver's License. Another supporting document could be a major credit card, employee ID or health insurance card, etc. International students need to fill out the W-8 form and provide a valid passport with I-20 visa and I-94, or the admission letter from their schools.

(3)Can I issue checks from my RMB account?

No. We do not offer RMB checks.

(4)How can I find my RMB account?

Customers can fund their RMB accounts by incoming RMB remittance or buying RMB from our bank. We do not accept RMB cash deposit at the moment.

(5)Can I withdraw RMB cash from my RMB account?

No. You can not withdraw RMB cash directly from your RMB account at this moment.

Yes. We offer RMB remittance service to accounts in China, including Hong Kong and Macau; however, according to the regulation, the daily limit could not exceed 80,000 Yuan, and the remitter and payee have to be the same person. If customers would like to send money to their friends and relatives in China, they should use our RMB pre-settlement remittance service.

(2)Can I or my relatives in China wire RMB into my RMB account at your branch?

Yes, we can deposit the fund into your RMB account at our branch, as long as the domestic branches in China have approved you remittance application. You should consult your domestic branch in China for the requirement of sending RMB to foreign countries.

(3)Am I required to open a RMB account at your branch in order to use your RMB remittance service?

RMB remittance is for customers who want to transfer RMB between their own RMB accounts at our branch and in China. According to the regulation, the name of the remitter and the payee has to be the same, and there are daily and annual limits of this practice. By using our RMB pre-settlement remittance service, you can transfer RMB to any payees other than your name, but you have to provide us the payee's identification number in China.

4.RMB Currency Exchange

(1)What are the maximum and minimum RMB currency exchange amounts?

There is no minimum amount for the currency exchange service.

For account customers, the daily limit is USD4,000 worth of RMB, and the annual limit is USD20,000 worth of RMB. For non-account customers, the daily limit is USD2,000 worth of RMB, and the annual limit is USD10,000 worth of RMB.

(2)Am I required to open an account to use the service? What kind of identification documents do I need to provide?

We offer RMB currency exchange service to both account customers and non-account customer. For customers who have accounts at our bank, they can exchange more than walk-in customers, and can directly credit/debit their accounts. Non-account customers need to provide their social security number and a government issued photo ID.

(3)Which branches of yours offer RMB currency exchange service?

Currently, only Chinatown Branch offers this service.

(4)Are the exchange rates offered by Chinatown Branch identical to the rates in China?

No. Exchange rate depends on many different factors, e.g. market supply and demand, shipping cost, insurance cost, administration cost, etc. Therefore, the rates offered by Chinatown Branch and the rates in China would not be the same. Chinatown Branch usually updates its exchange rates daily before the branch opens.

Both New York Branch and Chinatown Branch offer RMB services to personal customers. Service area is limited to Great New York Metropolitan Area.

Business Customers

1.RMB Deposit for Business Customers

(1)Q:What are the required documents for opening a business account?

A: Business customers must open a USD account first, if they have not already had one.

Required documents for account opening are the same as UDS accounts. Companies should complete the application form, W-9 form, Corporate Resolution Form, Signature Cards and Fax Agreement (optional). In addition, companies need to provide their Certificate of Incorporation, Filing Receipt, Articles of Incorporation, Employer Identification Number (EIN) notification letter issued by Internal Revenue Service (IRS), Financial Statement/Tax Return, and 2 valid ID of each authorized signor. All original documents must be presented and the bank will make photocopies of the document to keep on file. Besides, companies should also provide related documents that prove its trading background and transaction amount. In order to convert your USD into RMB, we require the exchange amount to be consistent with the transaction amount on your sales contract or related trade documents. If you are sending your application by mail, all require documents need to be notarized.

(2)Q:What are the rules of RMB settlement business set by the People's Bank of China and U.S. regulators?

A:U.S. regulators have not had any special specific rule for this kind of business. For the related regulations about RMB settlement Pilot areas, please visit the website of the People's Bank of China for updated information.

(3)Q: Are there any penalties if the amount of remittance exceeds the prescript amount?

A: We will not process the transaction if the amount of remittance exceeds the prescript amount. The excess amount will be exchanged into U.S. Dollar in accordance with the minimum exchange rate. There is no extra commission charge.

(4)Q: How can business customers send RMB? How much is the fee?

A: Business customers can send their RMB by wire transfer. The amount should be consistent with the sales contract or invoice provided. The fee charged for each remittance transaction is USD20.

(5)Q: Can I open more than one account to transfer money?

A: One company can only open one RMB settlement account at our bank.

3.Currency Exchange for Business Customers

(1)Non-deliverable forward (NDF) foreign exchange

1)Q: Can a business customer use NDF to hedge the potential RMB exchange rate risk related to its import/export trade business?

A: Yes.

2)Q: Can the margin be held in a time deposit account?

A: Yes, your margin deposit can be held in either a time deposit account or saving account.

3)Q: In addition to opening a USD settlement account, does a business customer need to open Margin Account at the same time to conduct NDF transaction?Should the margin deposit be in RMB or in USD?

A: Yes, your company must have a Margin Account in order to conduct NDF transaction and the margin deposit can be either in RMB or in USD at your discretion.

4)Q: What are the required documents my company needs to provide before conducting NDF transactions with your bank?

A: Business Customers must provide valid trade documents such as sales contracts. In addition, related Agreements with the bank must be signed before the first transaction can be entered.

(2)RMB spot exchange

1)Q:Are business customers required to have international trading background?

A: Yes.

2)Q: Can the bank provide same day settlement?

A: Although the exchange rate and amounts can be confirmed on the trading day, the settlement date is T+2 (two business days after trading day).

3)Q: How can a business customer inquire about the exchange rate?

A: The customer can make the inquiry by phone or by visiting our branch in person.

4)Q: How will the bank send trading confirmation to customers?

A: We can send the confirmation to customer by mail, e-mail or fax according to customers' needs.

5)Q: What documents are required for spot transactions?

A: Generally, the spot transactions are conducted by the Banking Department of our bank. If a business customer has frequent transaction needs with large amounts, the customer may choose to conduct directly with our FX & Funds Department. Then the customer must provide valid sales documents and sign related Agreements with the bank.

A: The target customers of trade financing include all Chinese-funded enterprises in U.S and U.S. local businesses. However, our trade financing and settlement services are not limited between China and the U.S.We also provide trade financing and settlement between U. S. and other countries. For detail procedure of these services please visit our website.

To open account in our branch, customers will needs to provide their trade documents.

(3)Q: Do I need to have lines of credit at your bank in order to use these services?

A: You may need a line of credit for some of our services, for examples, Letters of Credit and Packing Loan. Some other services like Export Factoring and Export Bill Purchase do not required to have a line of credit.

All New York Branch, NY Chinatown Branch and Los Angeles Branch offer RMB services to corporate customers. Services are limited to Great New York and Los Angeles Metropolitan Areas.